Skyline Champion Announces Third Quarter Fiscal 2022 Results
Skyline Champion Corporation (“Skyline Champion”) announced financial results for its third quarter ended January 1, 2022 for the fiscal year ending April 2, 2022 (“fiscal 2022”).
Third Quarter Fiscal 2022 Highlights (compared to Third Quarter Fiscal 2021)
- Net sales increased 41.6% to $534.7 million
- U.S. factory-built homes sold increased 9.2% to 5,832
- Total backlog increased to $1.5 billion
- Average selling price (“ASP”) per U.S. home sold increased 31.7% to $83,000
- Gross profit margin expanded by 1,040 basis points to 29.4%
- Net income increased by 213.1% to $67.6 million
- Earnings per share (“EPS”) increased to $1.18 from $0.38
- Adjusted EBITDA increased 201.4% to $96.7 million
- Adjusted EBITDA margin expanded by 960 basis points to 18.1%
- Net cash provided by operating activities of $75.5 million during the quarter
“I am pleased to report another outstanding quarter of operating and financial results,” said Mark Yost, Skyline Champion’s President and Chief Executive Officer. “The overall fundamentals remain as supportive as ever, while the near-term operating environment remains challenging due to ongoing disruptions in our supply chain and COVID-related labor headwinds. Our team continues to execute, which enabled us to increase production and deliver positive volume growth at higher profitability levels. The investments we have made to increase capacity and efficiency have enabled us to succeed in this challenging environment.”
Third Quarter Fiscal 2022 Results
Net sales for the third quarter fiscal 2022 increased 41.6% to $534.7 million compared to the prior-year period. The number of U.S. factory-built homes sold in the third quarter fiscal 2022 increased 9.2% to 5,832 compared to the prior year third quarter, because of strong demand and increased production levels. The average selling price per U.S. home sold increased 31.7% to $83,000 due to price increases in response to rising material costs and labor. The number of Canadian factory-built homes sold in the quarter increased to 336 homes compared to 318 homes in the prior-year period due to stronger demand and improved production levels. Total backlog for Skyline Champion was $1.5 billion as of January 1, 2022 compared to $488.5 million as of December 26, 2020. Backlog growth was driven by strong order levels that continue to outpace production, which is operating at less than full capacity in part due to supply chain availability as well as increased pricing and the acquisition of ScotBilt Homes, LLC and related companies.
Gross profit increased by 119.0% to $157.2 million in the third quarter fiscal 2022 compared to the prior-year period. Gross profit margin was 29.4% of net sales, a 1,040 basis point expansion compared to 19.0% in the third quarter fiscal 2021. The increase in the gross profit margin was driven by higher sales growth due to higher volume, pricing, and operating efficiencies.
Selling, general, and administrative expenses (“SG&A”) in the third quarter fiscal 2022 increased to $65.8 million from $44.3 million in the same period last year. SG&A as a percentage of net sales increased 60 basis points to 12.3%. Improved operations lead to higher production levels and fixed cost leverage during the quarter, partially offsetting higher expenses from variable compensation and the ongoing investments in the enhanced customer buying experience and supporting digital platform.
Net income increased by 213.1% to $67.6 million for the third quarter fiscal 2022 compared to the prior-year period. The increase in net income was mainly driven by the increase in sales volume, pricing, and operating leverage.
Adjusted EBITDA for the third quarter fiscal 2022 increased by 201.4% to $96.7 million compared to the third quarter fiscal 2021 primarily driven by an increase in net sales and improved profitability. Adjusted EBITDA margin expanded by 960 basis points to 18.1% due to higher sales growth, operational improvements, and leverage of fixed costs.
Operating cash flow for the third quarter fiscal 2022 increased 88.9% to $75.5 million compared to the third quarter fiscal 2021. As of January 1, 2022, Skyline Champion had $382.1 million of cash and cash equivalents.
For the complete press release, click here.
About Skyline Champion Corporation
Skyline Champion Corporation (NYSE: SKY) is the largest independent, publicly traded, factory-built housing company in North America and employs approximately 8,100 people. With almost 70 years of homebuilding experience and 40 manufacturing facilities throughout the United States and western Canada, Skyline Champion is well positioned with a leading portfolio of manufactured and modular homes, ADUs, park-models and modular buildings for the single-family, multi-family, and hospitality sectors.
In addition to its core home building business, Skyline Champion operates a factory-direct retail business, Titan Factory Direct, with 18 retail locations spanning the southern United States, and Star Fleet Trucking, providing transportation services to the manufactured housing and other industries from several dispatch locations across the United States.
Skyline Champion builds homes under some of the most well-known brand names in the factory-built housing industry including Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, Titan Homes in the U.S. and Moduline and SRI Homes in western Canada.
Kevin Doherty – Investor Relations – firstname.lastname@example.org – (248) 614-8211
Source: Skyline Champion Corporation